Major American Banks Join the Bitcoin Rush with New ETF Filings

Welcome to the US Crypto News Morning Briefing—your vital summary of today’s significant developments in the cryptocurrency world.

Key Takeaways

Major banks, including Bank of America and Morgan Stanley, are officially embracing cryptocurrency by filing for ETFs.
Bank of America's recommendation for clients to allocate 4% to digital assets signifies a shift in mainstream finance.
Regulatory clarity is enabling banks to expand into crypto services, paving the way for broader adoption of digital assets.

As leading banks venture into Bitcoin and cryptocurrency, the U.S. banking industry is showing that digital assets are becoming part of the mainstream financial strategy after years of being considered a niche investment.

What's New in Cryptocurrency? Morgan Stanley Files for Bitcoin and Solana ETFs

The excitement around 2026 is heating up, as Bank of America (BofA) has officially advised its wealth management clients to allocate up to 4% of their portfolios to digital assets. This endorsement positions crypto as a credible part of diversified investment approaches.

Earlier this month, BeInCrypto reported BofA’s plans to cover four Bitcoin ETFs, including BITB, FBTC, Grayscale Mini Trust, and IBIT, starting January 5, 2026.

Adding to this momentum, Morgan Stanley has filed for Bitcoin and Solana ETFs, marking a significant step in institutional acceptance of crypto. The bank, which manages $1.6 trillion in assets, has submitted an S-1 registration form, setting the stage for a Bitcoin ETF.

This decision by Morgan Stanley represents a pivotal moment for traditional finance as it embraces cryptocurrency. By expanding client access to Bitcoin and Solana through regulated investment vehicles, the bank indicates a shift towards serious crypto investment strategies rather than just exploratory measures.

Combined, these developments highlight how traditional financial institutions are responding to market trends, racing to provide crypto services ahead of soaring client interest.

Eric Trump enthusiastically noted, “In just 4 months, we’ve built one of the fastest-growing and strongest Bitcoin companies on Earth…Proud to announce that American Bitcoin just leaped to the #19 Largest Public Bitcoin Treasury.” American Bitcoin has increased its total Bitcoin reserves to approximately 5,427 BTC, achieving a BTC yield of about 105% since its Nasdaq debut on September 3, 2025, through January 2, 2026.

Several other U.S. banks have also been broadening their crypto initiatives. JPMorgan Chase has a long-standing involvement with its JPM Coin, a token for blockchain-based payments, and is developing infrastructure for digital assets. Goldman Sachs maintains crypto trading desks, providing institutional clients renewed access to crypto markets. Citigroup is exploring custody and trading services as well.

Additionally, Charles Schwab has announced plans for direct trading of Bitcoin and Ethereum on its platform, while PNC Bank has partnered with Coinbase to facilitate smooth crypto trading for its clients.

Embracing Crypto Products as Regulatory Clarity Increases

State Street is innovating with stablecoins and tokenized assets such as bonds and money market shares, indicating that banks are exploring beyond trading and custody into the realm of crypto-native financial products.

U.S. Bank (US Bancorp) has resumed Bitcoin custody services for institutional managers, including ETF custody, highlighting its commitment following improved regulatory clarity. As Stephen Philipson, vice chair of US Bank Wealth, Corporate, Commercial, and Institutional Banking, stated, “Following greater regulatory clarity, we’ve expanded our offering to include bitcoin ETFs, providing full-service solutions for custody and administration services.”

BNY Mellon continues to be an early adopter in safeguarding BTC and ETH holdings through dedicated platforms. Specialized crypto banks and fintech partnerships also play a significant role in this evolving landscape.

The updated guidance from regulatory bodies like the Federal Reserve, OCC, and FDIC now permits banks to offer custody for crypto assets, execute trades, and provide digital asset services, creating a crucial turning point for widespread adoption.

With increasing regulatory clarity, it's anticipated that more institutions will follow suit, solidifying the place of crypto in mainstream finance.

Chart of the Day

Morgan Stanley Bitcoin Trust S-1 registration was filed on January 6, 2026. Source: SEC Filing

Byte-Sized Alpha

Stay tuned for more U.S. crypto news to follow today.

Crypto Equities Pre-Market Overview